Nifty may rise to 10,910; 5 stocks that could return up to 13%

The index on Friday closed above its 61.80-percent retracement and is now heading towards 10,910, which may act as a near-term hurdle.

The Nifty has formed a bullish candlestick pattern over the last one week, which suggests that a previous trend of the market gaining after a week of consolidation is now resurfacing.

The index on Friday closed above its 61.80-percent retracement and is now heading towards 10,910, which may act as a near-term hurdle.

For a shorter time frame, the index has been consolidating around the upper band of Bollinger (20, 2) for four consecutive days, around 10,800. Bands are trading flat, which is indicative of a lack of momentum on either side, and decisive trade above this level would add upward momentum. Furthermore, MACD has given a positive crossover, which seems bullish.

On daily scale, stock has given breakout from an ‘Inverse Head & Shoulder’ pattern and consolidating above its Neckline. This pattern is a Bullish Reversal pattern. Furthermore, Momentum Indicators like MACD is trading around key support of Zero levels.

We are expecting prices to move higher from current levels till Rs 570 zone i.e. target of an Inverse Head Shoulder pattern. Buy Kansai Nerolac around Rs 510-514 with stoploss Rs 480 closing basis for target of Rs 560.

Stock is consolidating around its major moving average of 200 Simple Moving Average on daily scale. It has formed Multiple Reversal candles around its key support zone suggesting a possible change in trend. RSI (14) is trading around oversold zone.

On longer time frame, stock has taken support around previous breakout zone which is likely to work as demand zone. It has also given breakout from ‘Bullish Flag’ pattern, signifying resumption of previous up-trend. Rise in volume around support zone indicating Accumulation of stock at lower levels.

On weekly chart, stock is consolidating around up-ward sloping trend line (Connecting lows of 360 & 408). It has formed ‘Bullish’ Reversal candles around support zone signifying possible change in trend.

On daily chart, Tata Steel has closed above its short term moving averages. It might revert up to its major moving average of 200 SMA which stands around 640-650 levels. Buy Tata Steel around Rs 602-606 stoploss Rs 570 closing basis for target of Rs 655.